4 ms·

Not all consumers are equal. Wikipedia sized organizations would easily absorb the relatively trivial cost, so, they wouldn't switch. Their demand is relativel

by ben509 7y ago

Not all consumers are equal. Wikipedia sized organizations would easily absorb the relatively trivial cost, so, they wouldn't switch. Their demand is relatively inelastic to price. The people switching are going to be the far more numerous smaller operations, who are elastic to price. And, of course, anyone signing up for a new domain is highly elastic. Because there are lots of people who are highly elastic, the overall demand is highly elastic.

munk-a 7y ago
Wikipedia could absorb a trivial cost increase so it's likely that a PE firm would target them with more steep increases. From what I've read about their price increase limiting "agreement" it isn't one, it's just a statement and isn't laid out in any binding contracts. Maybe Wikipedia gets it's registration price bumped up to 3 million because the PE firm thinks the org can absorb the cost.
- ben509 7y ago
  It can't be laid out in a binding contract because it's a new contract each time you renew the name. This is something every renter has dealt with since forever. So, yes, they could absolutely start trying to shake down the biggest non-profit organizations. Those are also organizations that are highly sympathetic and have literally hundreds of millions of viewers, and thus immense political clout.
  - munk-a 7y ago
    It could be laid out in a binding contract for the purchase of .org that the PE firm is prevented from reoffering a name renewal above the rate they previously offered it and the agreed adjustment - it just appears that isn't actually contractually laid out anywhere and is simply a PR statement. Contract law certainly isn't something to trivially walk into, but there are ways this could have been done.
- nixgeek 7y ago
  Why wouldn’t Wikipedia hedge against this outcome by extending their domain for 10 years tomorrow, and paying $100 to do that?
  - wolfgang42 7y ago
    What happens after the 10 years are up? I very much hope that Wikipedia will be able to stay on the Internet for longer than that.

by ben509 7y ago

munk-a 7y ago

Wikipedia could absorb a trivial cost increase so it's likely that a PE firm would target them with more steep increases. From what I've read about their price increase limiting "agreement" it isn't one, it's just a statement and isn't laid out in any binding contracts. Maybe Wikipedia gets it's registration price bumped up to 3 million because the PE firm thinks the org can absorb the cost.

ben509 7y ago
It can't be laid out in a binding contract because it's a new contract each time you renew the name. This is something every renter has dealt with since forever. So, yes, they could absolutely start trying to shake down the biggest non-profit organizations. Those are also organizations that are highly sympathetic and have literally hundreds of millions of viewers, and thus immense political clout.
- munk-a 7y ago
  It could be laid out in a binding contract for the purchase of .org that the PE firm is prevented from reoffering a name renewal above the rate they previously offered it and the agreed adjustment - it just appears that isn't actually contractually laid out anywhere and is simply a PR statement. Contract law certainly isn't something to trivially walk into, but there are ways this could have been done.
nixgeek 7y ago
Why wouldn’t Wikipedia hedge against this outcome by extending their domain for 10 years tomorrow, and paying $100 to do that?
- wolfgang42 7y ago
  What happens after the 10 years are up? I very much hope that Wikipedia will be able to stay on the Internet for longer than that.